| Fri 11 Sep 2009, 12:12 | | FSE - Firestone Energy Limited - FSE Announces A$25 Million Capital Raising To |
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FSE
FSE
FSE - Firestone Energy Limited - FSE Announces A$25 Million Capital Raising To
Fund Growth Plans
FIRESTONE ENERGY LIMITED
(formerly Centralian Minerals Limited)
(Registration number: ABN 058 436 794)
(SA company registration number: 200/023973/10
Share code on the JSE: FSE
Share code on the ASX: FSE
ISIN: AU000000FSE6
("FSE" or "the Company")
FSE ANNOUNCES A$25 MILLION CAPITAL RAISING TO FUND GROWTH PLANS
Highlights:
- Successful A$25m capital raising for funding full scale Bankable
Feasibility Study for Waterberg coal project and financial commitments
due to JV partner Sekoko Coal Ltd.
Firestone Energy Limited (ASX:FSE / JSE:FSE) ("Firestone" or "the Company") is
pleased to announce that it has executed a term sheet for the underwriting of a
$25m capital raising involving the issue of convertible notes with a conversion
price of A$0.04 cents per share.
It is expected that legally binding documentation in respect of the transaction
will be settled within the next few days, when further details will be advised
on the execution of this documentation. BBY Limited is the Underwriter to the
entire Issue.
Use of proceeds
Firestone intends to allocate the net proceeds of the raising towards:
- The Bankable Feasibility Study for a large scale 18Mt per annum coal
mining operation at the Company`s Waterberg coal project in South
Africa.
- Meeting all financial commitments due to its Joint Venture partner,
Sekoko Coal (Pty) Limited.
- Additional working capital requirements.
Comments from Firestone Director, Colin McIntyre:
"The Board and Senior Management are pleased to finalise the transaction. It
puts Firestone in a very strong position to develop its potential world-class
Waterberg coal project in South Africa."
"The raising will enable the company to move to the next level in implementing
its growth strategy, bringing us closer to realising our vision of becoming a
leading coal producer in South Africa".
About Firestone Energy
Firestone Energy Limited is a Perth based exploration company listed on the
Australian Stock Exchange (ASX: FSE) and the Johannesburg Stock Exchange
(JSE:FSE). The Company sources and develops viable mineral projects with a
particular focus at this time on coal prospects in the Waterberg Coal Field,
South Africa.
The Company has joint ventures with Sekoko Coal over six farms located in the
Waterberg coalfield in the Limpopo Province of South Africa, with in-situ
indicated and inferred JORC resource of 3.5 billion tonnes (1.4 billion tonnes
of coal after washing). This coalfield is becoming increasingly important as
coal reserves in the Witbank, Highveld and Ermelo coalfields of the Mpumalanga
Province, which currently supply the majority of Eskom`s coal power stations,
become depleted over the next 20-30 years.
The Company has recently received government approval to commence a small scale
mining operation producing approximately 60,000 ROM tonnes per month (equivalent
to approximately 30-40,000 tonnes per month of saleable coal after washing),
providing a platform from which it plans to commence a large scale operation
producing up to 18Mt per annum by 2011.
Shareholders are advised that the trade halt on the trading of the Company`s
securities will be lifted following the release of this announcement.
Shareholders are advised that the trade halt on the trading of the Company`s
securities will be lifted following the release of this announcement.
For more information please contact:
Colin McIntyre
Director
+61 (08) 9381-2755
www.firestoneenergy.com.au
Email: enquiries@firestoneenergy.com.au
Pretoria
11 September 2009
Sponsor and Corporate Advisor
River Group
Date: 11/09/2009 12:12:02 Produced by the JSE SENS Department.
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